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Dunkin’ Donuts

I’m not an frequent coffee drinker, but I do find myself going to Dunkin’ Donuts for the occasional hot drink. What I do find particularly interesting about the franchise, is that almost every time I go, there seems to be little to no line. So what is it that keep’s its operations running smoothly and efficiently? Dunkin’ Donuts takes a disciplined approach that is able to balance consumer demand with operational execution. Its strategy of offering limited time offer deals has been among the best to work in the restaurant industry. Their strategy allows them to offer a differentiated menu to its wide array of customers. Through this method, Dunkin’ Donuts is able to introduce new products bringing in new customers. Setting themselves apart from its competitors is a key factor that has helped keep Dunkin’ Donuts a thriving business. Limited time offers allows Dunkin’ Donuts to explore new options, to get a feel for what customers want. Many times they find that customers really like a particular item, and they end up integrating it into their core menu.

Dunkin’ Donuts’ success comes from a vast and diverse pipeline that allows them to offer similar but different products engaging its customers to try new things, leading to increased sales. Customization is Dunkin’ Donuts’ core competency, not only does product quality matter, but its service as well.

Dunkin’ Donuts has a very low capital requirement relative to the rest of the coffee retail industry. This is due in part to its business model, centered around establishing franchises across the world. So what are some ways in which it keeps driving profits? One factor to consider is the flow of customers, something very important to managers at Dunkin’ Donuts. Being able to stay on top of demand, especially during peak hours, is an essential factor for their success. Dunkin’ Donuts usually offers little to no in-house dining space. Allowing them to reduce expense and continue to increase their contribution. They focus on giving the customer the convenience of getting an on the run breakfast and or coffee.

What is your opinion about Dunkin’ Donuts?

Do you believe their success is due to their diverse menu or more closely related to coffee demand?

Do you think that by offering quick service, Dunkin’ Donuts is neglecting product value?